Feature

Revisiting the 4% Rule

The trouble with sticking with fixed withdrawals is that you could outlive your money or live too parsimoniously. Flexibility is the key.

The California financial advisor who is behind a popular axiom for retirees that's supposed to ensure that their nest eggs will last 30 years has just retired.

For now, William Bengen is using his ubiquitous rule of thumb -- withdrawing 4% from savings in his first year of retirement, and then withdrawing that dollar figure, adjusted for inflation, every year thereafter. But he's not certain the strategy will hold up.